Institutionalization of corruption can be defined as the long-term consequence of corruptive behavior in a society. Institutionalization of corruption refers the phase when corruption accesses the value-system in society and becomes a habit and part of the cultural behavior. Corruption can be perceived as a serious problem, and institutionalized, when corruptible behavior has become rather a rule than an exception[1] .
"...institutionalization, where an initial corrupt decision or act becomes embedded in structures and processes and thereby routinized..."
Institutionalization, together with rationalization of corruption and socialization of corruption, are the three pillars that will lead to the normalization of corruption in an organisation[2] .
Institutionalization of corruption in the corporate world
Institutionalization of corruption in organizations is caused by repeated acts considered corruptive (e.g. bribes). This might be caused by an authorizing ethical environment where the company's financial goals are highly underlined and where members of the organization are given the right to act in an immoral manner. Leaders within organizations can be considered to have the most influence, in terms of corruptible behavior and can, therefore, be seen as the ones to prevent or to encourage the institutionalization process of corruption[3]
Corporate corruption and Corporate Social Responsibility
Corruption as emerged as one serious issue within Corporate Social Responsibility. CSR can be defined as the responsibility for companies to consider the impact that they have on society [4] .
An extensive CSR strategy can prevent corporate corruption as it can be used to set regulations that will emphasize the surveillance and the penalization of employees. However, in the case of institutionalized corruption, corruption being a part of the routines in a corporation, it can be difficult to the difference between correct and incorrect behavior. Organizational leaders have a important role in encouraging employees to reflect over their own actions as well as in defining the ethical norms of the that should be respected within the organization.
Finnish context
In Finland the most commonly known type of corruption that can be could be called institutionalized corruption, which has also been the study object of a few researchers, are the "Old boys networks" . This type of corruption is often seen as a mild form of corruption, but recognizable at the same time. However, these type of networks are considered as rather problematic as they create so called special relationships between the public decision-makers and representatives of the private sector [5] .
^ Obafemi Awolowo (2002). The institutionalization of corruption and its impact on political culture and behaviour in Nigeria. Nordic Journal of African Studies 11(3): 393-402.
^ Blake E. Ashforth and Vikas Anand (2003). The Normalization of Corruption in Organizations. Research in Organizational Behavior Vol. 25: 1-52.
^ Blake E. Ashforth and Vikas Anand (2003). The Normalization of Corruption in Organizations. Research in Organizational Behavior Vol. 25: 1-52.
Definition
Table of Contents
"...institutionalization, where an initial corrupt decision or act becomes embedded in structures and processes and thereby routinized..."
Institutionalization, together with rationalization of corruption and socialization of corruption, are the three pillars that will lead to the normalization of corruption in an organisation[2] .
Institutionalization of corruption in the corporate world
Institutionalization of corruption in organizations is caused by repeated acts considered corruptive (e.g. bribes). This might be caused by an authorizing ethical environment where the company's financial goals are highly underlined and where members of the organization are given the right to act in an immoral manner. Leaders within organizations can be considered to have the most influence, in terms of corruptible behavior and can, therefore, be seen as the ones to prevent or to encourage the institutionalization process of corruption[3]
Corporate corruption and Corporate Social Responsibility
Corruption as emerged as one serious issue within Corporate Social Responsibility. CSR can be defined as the responsibility for companies to consider the impact that they have on society [4] .
An extensive CSR strategy can prevent corporate corruption as it can be used to set regulations that will emphasize the surveillance and the penalization of employees. However, in the case of institutionalized corruption, corruption being a part of the routines in a corporation, it can be difficult to the difference between correct and incorrect behavior. Organizational leaders have a important role in encouraging employees to reflect over their own actions as well as in defining the ethical norms of the that should be respected within the organization.
Finnish context
In Finland the most commonly known type of corruption that can be could be called institutionalized corruption, which has also been the study object of a few researchers, are the "Old boys networks" . This type of corruption is often seen as a mild form of corruption, but recognizable at the same time. However, these type of networks are considered as rather problematic as they create so called special relationships between the public decision-makers and representatives of the private sector [5] .
Examples
GlaxoSmithKline